Quarterly results of the real estate fund Arete Invest: return since the establishment has exceeded the limit of 40 %
Arete Invest, a fast-growing fund focused on investments in the field of real estate, has published its results for the third quarter of this year. The value of the administered real estate owned by the fund increased to EUR 54.8 mil. The cumulated gross return of the currently opened sub-fund Arete Invest CEE II reached 40.5 % at the end of the quarter. “The results reflect the potential of the Czech and Slovak investment environment in the field of real estate and exceed the market results. We continue to keep our promise to the investors. And as has been the tradition, we pay out a part of the returns to them, on a quarterly basis,” says Lubor Svoboda, co-founder and Chairman of the Arete Invest managing board. “We are working on other acquisitions, and we are also planning new construction projects which will increase the value of our portfolio in some of our premises in the Czech and Slovak Republics,. We are planning to invest tens of millions of euros in the following months.” The expected value of the administered assets of Arete Invest CEE II during the assumed five-year investment cycle is EUR 200 mill. The sub-fund aims at the continuous appreciation of the invested investors´ assets in the amount of up 11 % annually, whereby up to 6 % annually is made up of monetary distributions paid out on a quarterly basis. The current return significantly exceeds these advised values. The restructuring of the industrial and logistic premises ARETE PARK NOVÉ MESTO in the Slovak Republic, which was planned for a long time, was initiated in the third quarter. Furthermore, as one of the first funds in the Czech Republic, Arete Invest closed its first sub-fund CEE at the end of the third quarter by officially deleting it from the CNB register. The sub-fund reached the appreciation over 100 % p.a. during the two years of active management, and its investors were paid out already at the beginning of the year.
Arete Invest will invest EUR 30 million in Slovakia
Arete Invest, a Czech rapid-growth fund focussed on real estate investment, plans to invest about EUR 30 million in Slovakia in 2018. It is considering new developments in industrial zones which it already owns, as well as potential new acquisitions. Arete Invest sees immense potential in the Slovak market. Arete Invest will invest EUR 30 million on the Slovak market, and the amount may yet change. “The Slovak market is advantageous for us for several reasons: stable economy, openness, European Union, standard legal process, and a similar mentality,” says Lubor Svoboda, co-founder and member of the administrative board of the Arete Invest fund. According to Mr Svoboda, studies have shown that there is less competition and most certainly higher pressure on demand for industrial properties in Slovakia than in the Czech Republic. Arete Invest is considering investing into two areas. Firstly, new construction at the compounds which it already owns, which would also lead to the creation of new job positions. Arete has also pinpointed certain investment opportunities and is in negotiation with parties on the purchase of new acquisition opportunities, which are already standing and generating revenue. “It will most likely be a matter of new acquisition, which we are currently negotiation,” discloses Mr Svoboda. “We are creating new production capacities, new job positions. We can also offer interesting investment opportunities for Slovak investors, who are seeking above-standard returns of up to 11% with ongoing investment pay-out, for investors who are looking to distribute risk into real estate not only in Slovakia, but also within the Czech Republic,” adds Mr Svoboda. At present, Arete owns two class A facilities in Slovakia: an industrial compound very close to the Kia automobile factory near Žilina, which is completely leased to the automobile component supplier Grupo Antolin; and the second industrial and logistics compound Arete Park Nové Mesto, which is located near Nové Mesto nad Váhom and which includes other lots designated for building development. The National Bank of Slovakia also assesses the development of commercial property as positive. “Industry and the commercial real estate sector have seen a rapid growth of loans, with their year-on-year dynamic attaching 15% in the first quarter of 2017. This development further increases the importance of these sectors, in particular the sector of commercial property,” states the central bank in its Financial Stability Report. Demand for office space and logistics centres is supported by the good performance of the corporate sector. “Based on rising trends in the commercial real estate sector, the growth of prices for commercial properties has continued, impacting the decline in profit from investments into this sector. However, investments into commercial real estate still offer interesting revenues and are an attractive opportunity for investors. The volume of investments in 2016 far exceeded the historical maximum from the pre-crisis period, and based on current trends, continued investment activity may be expected in the forthcoming period,” forecasts the National Bank of Slovakia.
The Czech Fund Arete Invest wants to invest 30 million euros in Slovakia
The Fund wants to invest, for example, in the new constructions in own areals. BRATISLAVA. Czech Investment Real Estate Fund Arete Invest plans to invest approximately EUR 30 million in Slovakia in 2018. The Fund is considering investing in two areas: to invest in new construction in the areals he already owns and at the same time the Fund has selected some investment opportunities and started negotiations on new acquisition opportunities that already bring return. https://ekonomika.sme.sk/c/20686558/cesky-fond-arete-invest-chce-investovat-na-slovensku-30-milionov-eur.html https://spravy.pravda.sk/ekonomika/clanok/446839-cesky-realitny-fond-chce-investovat-na-slovensku-30-milionov-eur/
Halls will not finish yet
J. Volner estimates that in the next two years there could be at least 350,000 m2 of industrial space in Slovakia. “This will be determined by a number of factors such as labor availability, e-commerce queries in tens of thousands of square meters or the state of the automotive market,” says M. Varačka. High increase should also support appetite for investor funds. For example, the Czech investment fund Arete Invest has described industrial property as the most profitable segment. According to the co-founder and a member of an administrative Board Robert Ides, the annual return for residential property ranges from four to 5.5 percent, and logistics and production – six to 7.5 percent. That is why the group advised large purchases in Slovakia. https://www.etrend.sk/trend-archiv/rok-2017/cislo-44/osial-v-halach-zatial-koniec-nevidi.html
Arete Invest: 2.Q results 2017
Arete Invest, a fast growing fund focused on real estate investment, has released its results for the second quarter of this year. The value of managed properties in the Fund's ownership increased to 53.5 million euros. The gross quarterly return of the currently open sub-fund Arete Invest CEE II was 9.8% p.q. and exceeded expectations four times. http://www.kancelarie.sk/novinky/arete-invest-vysledky-za-2-q-2017
Arete Invest closes first subfund
Arete Invest closed its first sub-fund, CEE, having it erased from the registry of the Czech National Bank (ČNB). The sub-fund appreciated by more than 100 percent over the two years of active management. In October 2016, the fund offloaded its residential portfolio of a few hundred flats to the international investor. http://cijeurope.com/en/encompassme-europe/27482/story/arete-invest-closes-first-subfund
The Arete Invest real estate fund has successfully closed its first sub-fund with an appreciation of over 100% and paid off its investors
Arete Invest, a rapidly growing fund focusing on investments in real estate, has become one of the first ever funds in the Czech Republic to successfully close its first sub-fund, CEE. The formal deletion from the Czech National Bank register took place in the past few days. In its two years of active management, the sub-fund achieved an appreciation of over 100% p.a. The investors were paid off at the beginning of this year. Arete Invest currently offers investments into its second sub-fund, CEE II, which focuses on the regular appreciation of invested funds at between 11% and 16% per year, while the current yield significantly exceeds these values. “We only set up the Arete Invest fund in 2014, however we can already be proud of the successes we have managed to achieve. In a very short time we significantly appreciated the portfolio of the first sub-fund, which we have now also successfully formally closed, something very rare on the Czech market. Now we are focusing all of our energy on a second sub-fund focusing on industrial real estate, which we also anticipate will produce above-standard results. The correctness of our assumptions has been shown by the audited yield for last year, which was a very high 25.7%,” said Lubor Svoboda, co-founder and chairman of the administrative board at Arete Invest. The investment story of the first Arete Invest sub-fund, CEE, was brought to a close last October with the sale of the whole of the residential portfolio composed of several hundred residential units to a foreign financial investor. This was followed by the economic and legal closure process for the sub-fund, which lasted several months and which has now been formally completed with the deletion from the register maintained by the Czech National Bank. In February 2016, a second sub-fund was set up, Arete Invest CEE II, which is gradually forming a homogenous portfolio of yield-producing high-standard industrial real estate. “The economic situation in Central Europe is beneficial to the development of logistics and manufacturing, and therefore the investment strategy of our second sub-fund focuses precisely in this direction. The record profits posted by multinationals and the historically highest revenues posted by car makers are only further evidence of this,” explained Robert Ides, co-founder and member of the administrative board at Arete Invest. The anticipated value of the Arete Invest CEE II managed assets during the anticipated five-year investment cycle is EUR 200 million. The sub-fund aims to regularly appreciate investors’ funds at between 11% and 16% per year, while of this up to 6% annually is financial distribution paid out on a quarterly basis. The current yield significantly exceeds these values. The value of the managed real estate owned by the fund grew in the second quarter of this year to EUR 53.5 million, while Arete Invest is planning to invest tens of millions more euros on the Czech and Slovak markets by the end of this year.
The third weekend in September in Prague’s Letňany was held in the sign of the first Prague Polo Open
The horse polo returned to Prague after six years and it was a truly unique experience. The tournaments were attended by professional world players, mostly from Argentina. Arete Invest was the organizing partner, Energo Future was the main organizer of the tournament, “We would like to renew the tradition of Polo in the Czech Republic. During the First Republic and during the monarchy, Polo was a very popular sport and we want to restore this tradition and move it to a higher level, “says Milan Nebuchla from Energo Future. For the final tournament there came hundreds of spectators and traditionally, also ladies in classic hats. Forbes: http://www.forbes.cz/caky-a-malety-do-prahy-se-vratilo-spickove-konske-polo/ Ihned: http://domaci.ihned.cz/c1-65893430-v-cesku-se-po-letech-hralo-svetove-polo-pristi-rok-by-mohlo-prilakat-treba-i-britske-prince
Arete Invest Real Estate Fund quarterly results: yield outstrips expectations four-fold
Arete Invest, a fast-growing fund which focuses on investment in real estate, has published its results for the second quarter of the year. The value of real estate in the fund portfolio rose to EUR 53.5 million. The gross quarterly yield of the at-present open-ended Arete Invest CEE II sub-fund was 9.8 % p.q. a figure which outstripped expectations four-fold. “The results confirm the potential of the Czech and Slovak real estate investment environment, with the gross quarterly yield surpassing the market results many times over. We have kept the promise we made to investors and will pay out part of the yield on a quarterly basis,” explains Lubor Svoboda, joint founder and chairman of the administrative board at the Arete Invest fund. “The value of our assets in the second quarter rose further. Moreover, we are planning new acquisitions in the final part of the year. We are planning to invest further tens of millions of euro in the Czech and Slovak markets by the end of this year.” The expected value of managed assets in Arete Invest CEE II over the anticipated five-year investment cycle is EUR 200 million. The sub-fund is aiming for regular appreciation of the money deposited by investors of 11 to 16 per cent per annum, whereby up to 6 per cent of this per year will be paid out on a quarterly basis. The current profitability has far outstripped these estimated values. Arete Invest was presented with a Special Award for Innovation and Transparency on the Czech Investment Market at the prestigious Czech Top 100 Awards at a ceremonial evening held at the Spanish Hall of Prague Castle at the end of the second quarter. The reason for this special award from Czech Top 100 was mainly the company’s work in bringing foreign capital to the Czech Republic, along with its highly transparent approach to investors, using international standards but under the supervision of the Czech National Bank thanks to local registration of the fund, regular distribution of 6 % per annum and a short investment cycle for the first sub-fund, with audited result of more than 100 % profit for shareholders in only 18 months.
The economy is growing; demand for industrial property exceeds supply
Arete Invest, a fast growing fund focused on the property investment, started to publish its quarterly market analysis of industrial and logistic property in the Czech Republic. In the second quarter, 205,000 m2 of new premises were built but 245,000 m2 were newly occupied, thus more than 40,000 m2 of the area. In total there are 6,68 mil m2 of industrial and logistic property in the country, slightly more over 4% of the area is free. „The market situation of industrial property confirms a long-term positive trend of economic growth. A shortage of manpower is becoming a limiting factor for investors and tenants. Another interesting parameter is a vacancy rate. The vacancy rate reaches very low levels, nevertheless, it is important to realize that it is still a great absolute value out of the total amount of m2 of the property,” explains Tomáš Novotný, a member of the investment committee of Arete Invest fund, responsible for the strategic investment and asset management. “When choosing our investment, we focus on the locations where the unemployment shows for us more positive values than the average number. Therefore, our portfolio has a zero-vacancy rate and it falls within the above-average values compared to the market,“ he adds. At the end of the second quarter of this year there were 6,68 mil m2 of industrial and logistic property in the Czech Republic, another 558,000 m2 is under construction, especially around Prague. 4,05% of the area is free. The so-called gross lease reached 325,000 m2 in the reference period. Net lease, which is net of repeatedly concluded contracts and thus represents newly occupied premises, was 245,000 m2. The lease rate per square meter generally varies between EUR 3,60 and 4,40 in case of industrial and logistic property. About the industrial property analysis „Within the framework of our current sub-fund Arete Invest CEE II we create subsequently a portfolio of yield industrial and logistic property with a high standard. We analyze the market in detail and we have decided to share our lessons learned. Thus, we are going to publish our analysis conclusions on a quarterly basis,“ mentions Lubor Svoboda, a co-founder and chairman of the management board of the Arete Invest fund. The analysis of industrial and logistic property includes objects owned by developers and investors. It does not include e.g. buildings which the company builds for itself and which are its property. Arete Invest draws up the analysis on a quarterly basis based on the public market data acquired by face-to-face meetings and telephone interviews of the developer´s and investor´s representatives and from published supplies and demands. If the acquired data is incomplete or ambiguous, the data examination is carried out to ensure the analysis is based on the data which is complete within the maximum possible extent.
